UK economy loses £11.1 billion a year to major disruptions, claims the BCI

The Business Continuity Institute (BCI) says that it has estimated that the UK economy is losing £11.1 billion a year, the equivalent to 0.8 percent of UK GDP, to major disruptions due to lack of business continuity management within organizations based in the UK.

Further to the recent Chartered Management Institute’s ‘A Decade of Living Dangerously’ report, the BCI researched key findings across 17 causes of major disruptions to calculate, for the first time, the cost impact to the UK economy.

The BCI has also issued a warning about the critical importance of extending business continuity management to the supply chain. Lyndon Bird, the BCI’s technical director said:

“In the current economic downturn, customers and suppliers will inevitably go out of business and it is vital that an organization understands its dependency on critical suppliers. The lack of availability to essential products can have a serious impact on business. Disruptions to the supply chain will be one of the main business continuity concerns for 2009 and will run way into 2010.”

http://www.thebci.org

•Date:24th March 2009• Region: UK •Type: Article •Topic: BC statistics
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